Business, international

Dead reckoning

Article Abstract:

Russian life expectancy has dropped to 61-years-old for boys in 1999 from 65-years-old in 1959. Life expectancy was thought to be affected by economic development, but the reverse may be true. Africa has been hit by AIDS, and Russia by excess vodka consumption, both have seen health declines which superficially do not appear to affect economic growth. Gross domestic product growth in both areas has tracked male life expectancy, while countries suffering sharp output drops have not been hit by lower life expectancy.

Passive Primakov

Article Abstract:

There is a concern that the Russian government, headed by Yevgeny Primakov, does not appear to have a coherent plan to tackle the country's economic crisis. There are a number of ideas, such as reform of the tax system, but there are also obstacles to proposals. The value of the ruble has been stabilized, but the government appears to expect western aid to tackle its problems. Tax collection has been reduced, and Russia's gross domestic product may drop by 8% in 1998, while inflation could reach 230% by Dec 1998.

How do they survive?

Article Abstract:

Russians with access to garden plots are able to survive on little money by growing much of their own food, and few expect help from the government. Those who live in towns and cities with no smallholding tradition or access to land are worse off. The collapse of the banking system has led to problems for traders. The government may face protests and demands for action, and has started to pay wage arrears. Traders do not always use markets to sell produce due to fear of the mafia.